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BHPH: A Collection Business, Not a Sales Business

By Deal Pack - June 22, 2012

Not a sales business? Every car business is about sales! True, you wouldn’t be around if you weren’t selling vehicles off the lot. However, sales is the easy part for the Buy Here Pay Here folks. The guys and gals involved in the BHPH industry are selling to customers who really have no other choice than to pay the higher interest rate, and hopefully repair their less than perfect credit score. You are the bank, so you are developing a long-standing rapport with your customers and making sure you can collect all payments in a timely fashion to earn your gross profit. How do you know these people are actually going to pay? Well, you don’t. You could trust your “gut-feeling,” but there is just no telling if someone with a 450 Beacon score is going to make their payments on time, if at all.


Advances in technology have made consistency in collecting payments a great deal easier. Text messaging, GPS, starter-interrupt devices, and voice-broadcasting make reaching out to the customer more systematic, so no one on your delinquency list falls through the cracks and becomes irreversibly behind on his/her loan. Online credit card payments, recurring credit card payments, and ACH payments make it easy for your customers to pay continuously and on schedule.


It’s important that the DMS system you decide to invest in has the ability to integrate and handle the collections operation efficiently. Deal Pack is integrated with Passtime, Ituran, and Ontime in regards to vehicle tracking and starter-interrupt devices. We are also integrated with CallFire.com to give collectors the capability to send out mass voice messages at speeds of over 50 calls per minute to a queue of their choice and/or text messages as reminders for payments coming due or payments that have fallen behind. Online and recurring credit card payments are available to make it easier and more convenient for the customer to make a payment. Technology is forever evolving; it is important to always be aware of the latest, greatest, and newest features your software provider has integrated into your system to aid your employees and help your business run smoothly!

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